OTTAWA: Canada has halted trade talks with India, raising tensions between the two nations ahead of the much-anticipated G20 Summit. The Financial Post reports that these negotiations were abruptly suspended last month at the request of Canadian Prime Minister Justin Trudeau's government. This pause comes after a decade of negotiations between India and Canada for a comprehensive trade deal.
The trade talks, initially initiated in 2010, had been progressing steadily until this abrupt decision from Ottawa. This development comes amid strained relations between the two countries, exacerbated by the resurgence of the Khalistani movement in Canada.
Sanjay Kumar Verma, India’s high commissioner to Canada, confirmed that the Canadian government initiated this pause. He stated, "The Canadian side has suggested a ‘pause’ to the ongoing fast-paced negotiations on an early-progress trade agreement with India. Though I am not aware of exact reason(s), most likely, the ‘pause’ will allow more consultations with the stakeholders."
This decision comes as a surprise since Indian Minister for Commerce and Industry, Piyush Goyal, had visited Canada in May of the same year. During the visit, Goyal met with his Canadian counterpart, Mary Ng, and both sides appeared optimistic about the negotiations. Ng even claimed that both countries were getting closer to signing the agreement.
Furthermore, Canadian Prime Minister Justin Trudeau is scheduled to visit New Delhi for the upcoming G20 Summit this month. However, it remains uncertain whether he will meet his Indian counterpart, Narendra Modi, on the sidelines of this significant event.
The India-Canada Comprehensive Economic Partnership Agreement (CEPA), which has been in the works for over a decade, aims to eliminate tariffs on a significant majority of bilateral trade. It covers various aspects, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and other areas of economic cooperation.
The journey toward this agreement began in September 2008 when the India-Canada CEO Round Table recommended its formation. A Joint Study conducted in September 2010 strongly recommended the benefits of CEPA for both countries.
The formal negotiations for CEPA were launched in November 2010, and there have been several rounds of discussions since then. Despite the long negotiation process, the sudden pause in talks raises questions about the future of this trade agreement and the diplomatic relations between Canada and India.
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